UK Issues a Warning on ICOs But Some Are Already Immune

Share This

Tags

Less than a year after the industry began, running a Blockchain business using a digital token has suddenly become a lot more complicated.
ICOs Float Between A Rock And A Hard Place
The free-for-all of the first six months of 2017 when Blockchain startups and ‘projects’ created and sold tokens at will, often for hundreds of millions of dollars, has changed thanks to snap regulatory decisions.
The context of regulator reactions continues to dictate digital token or ICO market performance.

In more liberal settings such as the US, the Securities and Exchange Commission (SEC) has sought to create a wary environment among Blockchain businesses looking to issue a token. According to its exact functions and technical make-up, a token may or may not conform to the legacy description of a ‘security,’ and issuers must act accordingly to stay above the law.
The UK has become the latest major economy to publish official guidance on the phenomenon. Literature released Tuesday, September 12 by the country’s Financial Conduct Authority closely tracks the SEC.
“Whether an ICO falls within the FCA’s regulatory boundaries or not can only be decided case by case,” it states.
Most …